The Parties to an employment contract are free to stipulate a liquidated damages clause to be referred to in case of termination said contract without any just cause.
In the absence of a valid liquidated damages clause inserted in the relevant contract of employment, the amount of compensation for termination of contract without just cause needs to be assessed in application of the other parameters set out in Article 17.1 of the FIFA Regulations for the Status and Transfer of Players.Facts/Procedure
On 7 July 2015, the Parties signed an employment contract valid as of 1 July 2015 until 31 December 2016 (the Contract).
On 30 December 2015, Liaoning Football Club (the Club) forwarded a Termination Letter to the Player. On 16 February 2016, a representative of Erik Cosmin Bicfalvi (the Player) asked the Club for documentation of the termination of the Contract and for the confirmation that the Player was a free agent.
On 26 February 2016, the Player lodged a claim for breach of contract against the Club before the FIFA Dispute Resolution Chamber (FIFA DRC) and requested the total amount of USD 2,670,298.16 plus interest at the rate of 5% p.a. as of 30 December 2015. On 29 July 2016, the FIFA DRC partially accepted the Player’s claim and awarded him USD 1,389,992 plus 5% interest.
On 28 November 2016, the Club filed its Statement of Appeal with CAS.
Points of Law
1. What was...
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